Shares of AK Steel (NYSE: AKS) were whipsawed after the company updated its third quarter guidance. This was a planned announcement and updates ongoing factors affecting business.

Losses for the 3rd quarter are expected to be 60 and 65 cents per share, in part due to $29 million in planned expenses associated with a planned blast furnace outage at the company's Ashland Works. Additionally the company plans for a 26 cents per share tax value allowance. The average analyst estimates for the 3rd quarter is for a loss of 20 cents.

AK also said that it expects the average selling price in the 3rd quarter to be 7 percent lower than in the second quarter due to lower spot prices, reduced surcharges, and lower raw material costs.

In the second quarter, the company announced that it had elected to suspend its dividend in order to save the company about $22 million in capital needed for the business. This had AKS investors on edge, and as a result trading has been choppy.

After trading lower pre-market, shares of AKS swung back into the green early in the session and are now higher by 3.3 percent.

Last week steel stocks got a boost when China announced it had approved $157 billion in government projects. This week stocks are reacting to Fed efforts to stimulate the economy in the U.S., causing investors to grow increasingly bullish on the sector.